OfBusiness Structure Dailies | 7th July 2023

Prices

• There have been no changes in primary Structures last month. However, slight variations were observed on an item-by-item basis due to availability and rolling plans. Overall, the market remained stable, and there is no news regarding price changes for July yet. The primary mills’ offers for 100 x 50 Channel are as follows:
  • Ex-Durgapur: Rs. 54,500/ton
  • Ex-Chennai: Rs. 57,500/ton
  • Ex-Hyderabad: Rs. 56,000/ton
• The secondary market witnessed a slight decline last week, primarily due to changes in raw material costs. It is expected to further decrease this week as Billet prices have fallen. The market is currently experiencing a downturn due to weak demand. Secondary re-rolling mills were offering 100 x 50 Channel as follows:
  • Ex-Raipur: Rs. 49,500/ton
  • Ex-Raigarh: Rs. 49,200/ton
  • Ex-Chennai: Rs. 52,500/ton
  • Ex-Hyderabad: Rs. 50,300/ton

Note: These prices are excluding trade discounts.

Demand and Supply

• So far, supply for the primary segment has not encountered any major issues as the majority of lower sections are available. However, there is a shortage of heavy sections as some are not readily accessible and others are made to order, depending on the required length specified by the client.
• Whereas, no shortages have been observed in the secondary segment thus far. However, there have been delays in make-to-order processes as some manufacturers have reduced their billet stocking.

News

• Ankur Industries Ltd’s plant, spanning 82 acres and located under the Gorakhpur Industrial Development Authority, is operational. With a project worth Rs 550 crore, the company is currently producing Thermax powered metal rods. Furthermore, they have signed an MoU worth ₹700 crore with the UP government to expand the plant. The current production capacity of the plant stands at 3 lakh tons per year.

OFB’s Opinion

• Due to the downtrend in billet prices, the secondary market is expected to decrease further. Manufacturers are also exercising caution by stocking and procuring billets based on received orders instead of accumulating excess inventory. The primary market is expected to open with a downtrend.